*** PRESS RELEASE ***

5 MW Project Will More than Triple San Francisco’s Total Solar Energy
Output

SAN FRANCISCO, CA – Mayor Gavin Newsom today lauded the Board of
Supervisors’ approval of a five megawatt (MW) solar installation for the
roof of the Sunset Reservoir in San Francisco. When completed in 2010, the
project will be California’s largest solar photovoltaic (PV) installation
and more than triple San Francisco’s total municipal solar energy output
from 2 MW today to 7 MW. The Board’s approval of a 25-year contract between
the San Francisco Public Utilities Commission (SFPUC) and San
Francisco-based Recurrent Energy will deliver clean, renewable solar power
for City municipal services and facilities, including public schools, San
Francisco International Airport, SF General Hospital, Muni and more. The
project will also create more than 70 local green jobs, including at least
21 jobs for individuals in the City’s workforce development programs.

“Today San Francisco took another major step towards achieving our
commitments to reduce greenhouse gases and grow our green economy,” said
Mayor Newsom, who sponsored the legislation. “With this single project, we
will more than triple San Francisco’s solar energy production, build
California’s largest photovoltaic system, and help lead the state towards a
future of clean, renewable energy.”

“I’m proud that my district will soon be home to California’s largest solar
PV installation,” said Supervisor Carmen Chu, who co-sponsored the
legislation with Mayor Newsom, and whose district includes the 8-square
block Sunset Reservoir, the City’s largest. “I want to thank the
environmental community, my colleagues on the Board, the SFPUC and
Recurrent Energy for forging this smart public-private partnership that
will rapidly expand our green power resources.”

The agreement between the SFPUC and Recurrent Energy leverages a 30%
federal tax credit available only to the private sector through a “Power
Purchase Agreement” (PPA) to dramatically lower project costs. Over the 25
year life of the contract, the City estimates that the power purchased from
the project will cost $50.3 million, $36 million less than the lifetime
cost of $86.3 million had the City built and financed the system
themselves. Under the agreement, Recurrent Energy also assumes all the risk
of financing, building and operating the project. The SFPUC is only
responsible for purchasing the solar power produced at a competitive rate.
The measure was also co-sponsored by Supervisors Bevan Dufty, Michela
Alioto-Pier, and Eric Mar.

“With this agreement San Francisco can continue to be a leader in
developing the solar energy markets while taking concrete steps towards
meeting our renewable energy and greenhouse gas reduction goals,” said
SFPUC General Manager Ed Harrington.

“Recurrent Energy is proud to partner with the City of San Francisco to
create local green jobs now and deliver clean solar public power for the
future,” said Recurrent Energy’s CEO, Arno Harris.

Why doesn’t the City build the system?Pending Board of Supervisors approval in first quarter of 2009, the project would be on track to begin construction in the summer of 2009 and complete in first quarter of 2010.

Is that a responsive answer?

Why was this location selected?This location was chosen because it is one of the largest reservoirs and rooftops owned by the city. The recent seismic upgrade of the roof over the Sunset Reservoir’s north basin makes it strong enough for the installation of solar panels. While located in the Sunset district, the solar resource is still very good, on average only 15% lower than the sunniest areas of the City.

Again, is that a responsive answer? We have to build solar on rooftops and reservoirs because…why?

Why does the system need to be located within the city?The City needs electricity generated inside San Francisco. Starting in 1998, the City made efforts to shutter old polluting power plants within San Francisco. In 2006, Hunter’s Point power plant was permanently closed and subsequently demolished. The Potrero Hill power plant was also under discussion for closure, but the California Independent System Operator (Cal-ISO) has determined that the Potrero Hills[yes, “Hills” – howdy stranger, welcome to San Francisco!] power plant cannot be decommissioned until new transmission or generation is added within San Francisco. This project will add much needed generation to the City of San Francisco.